50 e-buses set for rollout in Cebu

CEBU, Philippines — Around 50 electric buses are set for initial deployment in Cebu to reduce fuel dependence and address mounting transport costs amid the Middle East crisis.

The initiative forms part of a national government program led by the Department of `Transportation (DOTr) and the Department of Trade and Industry (DTI), in partnership with electric vehicle manufacturers.

Under the scheme, transport cooperatives may acquire electric buses through a loan-based financing arrangement, eliminating the need for upfront capital.

Provincial Administrator Atty. Ace Durano said the program directly addresses the financial strain on transport operators caused by volatile fuel prices.

“So tungod sa high fuel prices, ang traditional nga public transport karon, ang diesel, moabot na og about P50 per kilometer ang gasto sa pagpadagan,” Durano said.

He noted that such costs have made it increasingly difficult for transport groups to earn, leading many to seek government subsidies.

“Ang mga transport coop, mga transport companies di na gyud mokita. Mao nang mangayo sila og subsidies, pero dili man sad pwede nga sige lang og subsidies,” he added.

In contrast, electric buses are expected to slash operating costs to around P5 per kilometer.

“Mao na nga gi-push sa national government nga mo-shift ta into electric buses kay ang cost to operate is only P5 per kilometer compared sa P50,” Durano said.

Each electric bus costs about P4.5 million. Manufacturers will shoulder half of the amount, while the remaining balance will be financed through loans facilitated by the DTI’s Small Business Corp.

“So ang transport coop, wala gyud na silay cash out. They will just pay based sa ilang operation,” Durano said.

He added that studies show cooperatives can still generate income while paying off the loan.

The Cebu Provincial Government will not purchase the buses but will focus on route planning and system organization.

“Ang role ra gyud sa province is to establish the route. Data-driven naman ta, kahibaw na ta pila ka buses ang kinahanglan,” he said.

Initial routes identified for the rollout are the Naga City-South Bus Terminal corridor and the Danao City-North Bus Terminal route, both selected for high commuter demand and traffic volume.

Durano said the system is designed to improve convenience and predictability for passengers.

“For me, that’s really where the convenience comes from nga every 20 minutes naa gyud moabot nga bus. Maka-schedule ang tao, dili na magtag-an kung kanus-a naay masakyan,” he said.

At least 50 accredited transport cooperatives in Cebu may join the program, although participation remains voluntary. Twelve cooperatives have already been briefed, and all reportedly expressed interest.

Manufacturers will also maintain the vehicles, install charging stations along routes, and receive half of the revenues under the partnership arrangement.

“They will also get half of the revenues, and sila sad mo-maintain sa vehicles ug mo-provide sa EV chargers,” Durano said.

This setup, he said, lessens the operational burden on cooperatives, whose main responsibility will be loan repayment and bus operations.

“So ang part ra gyud sa coop is to assume the loan and operate the vehicles,” he added. Durano described the arrangement as a “win-win situation” for all stakeholders.

He clarified that the program will not add more vehicles to already congested roads but will replace existing traditional units.

“Dili ta magpuno. Atong buhaton is ilisan ang existing vehicles kay mahal na gyud kaayo i-operate ang traditional units,” he said.

Governor Pamela Baricuatro personally tested the electric buses in Manila last Monday, Durano said. The units have reportedly been operating in Metro Manila for three to four years.

For commuters, the system will include digital features such as a mobile application that allows passengers to track bus locations and purchase fares online.

“For commuters, naa’y app nga maka-follow sila kung asa na ang bus, ug pwede sad sila mopalit online sa ilang fare,” Durano said.

Fare rates have yet to be finalized, but Durano said there is strong pressure to lower fares due to the significantly reduced operating costs.

“Because of the P5 per kilometer nga cost, there is pressure to lower fares,” he said.

The rollout is targeted to begin by July, with charging stations already being prepared. Initial deployment will cover the identified north and south routes.

While a few electric buses are already operating in Cebu under private firms, this will be the first large-scale integration of electric units into the province’s public transport system.

“Karon, isud na nato siya as public transport,” Durano said.

He stressed that the timing is crucial, noting that many operators have already stopped operating because of soaring fuel prices.

“Daghan na kaayo ang wala na nagpadagan kay mahal ang krudo. Mao sad na nga ang commuters dugay na kaayo makasakay,” he said. — Sandara Laurente CTU-Tuburan Intern (FREEMAN)